Challenges in Global CCS Projects 2018/5/5 Challenges in Global CCS Projects and Coping Strategy Research Institute of Petroleum Exploration and Development, PetroChina Oct. 24-26, Valencia, Spain

Outline 1. Why do we do CCS/CCUS 2. Global CCS projects 3. Challenge for CCS 4. Coping strategy for CCS 5. Conclusions

1. Why do we do CCS/CCUS Because we have only one earth in the universe, we need to protect it to save human being Since the industrial revolution, human activity is more and more dependent on fossil fuels, which emit a great of greenhouse gas

CO2 emissions in the world in 2014 1. Why do we do CCS/CCUS CO2 emissions in the world in 2014 Country CO2 emission /108t China (mainland) 27.95 USA 14.14 India 5.55 Russia 4.88 Japan 3.39 Germany 2.07 Iran 1.68 Koren 1.62 Saudi Arabia 1.48 Brazil 1.37 Mexio 1.33 Indonesia 1.31 Canada 1.30 South Afiica 1.29 United Kingdom 1.25 Australia 1.03

1. Why do we do CCS/CCUS CO2 Concentration on the earth in the atmosphere Data source: CO2Now.org Temperature increase with CO2 concentration By the end of the century, we could expect the planet’s average temperature to rise anywhere between about 1.5 and 2°C

Large-scale projects in the world 2018/5/5 2. Global CCS projects Large-scale projects in the world Projects Country Capture Size/Mtpa Industry Transport Storage Starting Time Sleipner Norway Pre-combustion 0.9 Gas processing None Direct Injection Deep saline 1996 Weyburn Canada Precombustion 3.0 Natural gas synthetic Pipeline 315 km EOR 2000 Salah Algeria Pipeline 14 km 2004 Snøhvit 0.6-0.8 LNG production Pipeline 152 km offshoresaline 2008 Century Plant England 8.4 Pipeline 69 km 2010 Coffeyville plant USA Industrial separation 1.0 Fertilizer production Pipeline 112 km 2013 Boundary Dam Post-combustion 1 Power generation Pipeline 100km 2014 Kemper County 3.5 Pipeline   Quest 1.08 hydrogen processing Pipeline 65km 2015 Uthmaniyah Saudi Arabia 0.8 Pipeline 700km Gorgon Australia 3.4-4.0 Natural gas processing Pipeline 7km onshore saline 2016 Illinois Industrial Ethanol production Pipeline 1.6km onshore sali

2018/5/5 2. Global CCS projects In recently years, the large-scale CCS projects continues to the steady increase

2. Global CCS projects Total CO2 capture capacity in the World 2018/5/5 2. Global CCS projects Total CO2 capture capacity in the World CO2 capture capacity by actual and expect year of operation

2. Global CCS projects Global CO2 storage potential Type 2018/5/5 2. Global CCS projects Global CO2 storage potential Type CO2 storage capacity/Gt Depleted Oil reservoirs 690 Depleted Gas reservoirs 120 saline aquifers 400-10000 coal beds 40 total 1160-10760 IPCC special Report on Carbon dioxide Capture and Storage

2018/5/5 3. Challenge for CCS CCS is a systematical engineering, also, it has good prospects, CCS faces a large number of critical challenges in the future, including four technology challenges and four environment challenges, as shown in below figures

3. Challenge for CCS CCS price impacts on its commercial development Demonstration phase (2015) Early commercial phase (2020+) Mature commercial phase (2030+) $/ton CO2 Estimated cost of CCS Carbon price forecast* Economic gap Commercial phase: Cost of CCS expected to be in the range of the future carbon price Demonstration phase: Not economic on standalone basis. Cost ratio of CCS projects

4. Coping strategy for CCS Four ways for reducing CO2 emission CO2 capture and geological sequestration (CCGS) Depleted Oil & Gas reservoirs, saline aquifers and coal beds for CO2 Storage CO2 Capture, utilization and Storage (CCUS) Oil & Gas reservoirs for EOR, EGR, ECBM, EWR

4. Coping strategy for CCS CO2 Capture and Utilization (CCU) CO2 capture for developing renewable energy, food and new material and so on simple equation: simple equation: sunlight+ water + carbon dioxide =methane= sustainable fuel http://www.pnas.org/content/113/17/4545.full http://www.pnas.org/content/112/37/11461.full

4. Coping strategy for CCS Energy saving and CO2 emission reduction and improved energy efficiency (ESCR)

4. Coping strategy for CCS Social strategy Public awareness Policy CCS financial

5. Conclusions Distinguish the CCGS, CCUS, CCU and SECR , in order to make full use of these technology Develop the new CCS/CCUS technology to reduce the Cost of CCS/CCUS chain and improve the energy utilization efficient Accelerate the CCGS and CCUS technology innovation, construct the CO2 hub, cluster and transportation network, and establish the long-term mechanism of monitoring and management to reduce the risk of CO2 storage Introduce the mitigate CO2 knowledge, organizing public education of CCS chain, promoting exchange between governments, improve public awareness, build good finance channel for developing practical CCS technology According the different country policy, perfect carbon regulations and laws, build international standards of carbon management, aiming to ensure the implement of the large-scale CCGS and CCUS projects

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